Tests of Details vs Substantive Analytical Procedures
Both provide evidence about assertions, but they do it differently.
Tests of details
Tests of details inspect transactions, balances, documents, confirmations, calculations, or other specific evidence.
Substantive analytics
Substantive analytical procedures develop expectations and investigate significant differences.
Precision
The auditor needs an expectation precise enough to detect a material misstatement when relying on substantive analytics.
Exam strategy
Specific evidence points to tests of details; expectation-based evidence points to substantive analytics.
The takeaway
Substantive evidence can come from detailed testing or sufficiently precise analytical expectations.
Related Summit resources
FAQ
What is the core idea?
Substantive evidence can come from detailed testing or sufficiently precise analytical expectations.
What should you identify first?
Both provide evidence about assertions, but they do it differently.
Why does this matter on the CPA Exam?
Compare the two main categories of substantive audit procedures.